United State Bans AMD AI Chip Sales to China

AMD encountered challenges selling AI chips to China due to United states regulations, impacting its competition with Nvidia.

It would appear that businesses producing and fostering services related to artificial intelligence are confronting new hurdles daily as the global competition for artificial intelligence becomes more intense.

During this ongoing struggle about artificial intelligence development and the pioneering of this industry, the tech giant AMD (Advanced Micro Devices) has encountered challenges with selling artificial intelligence chips to China.

Officials from the United States reportedly prohibited selling an artificial intelligence chip designed specifically for China because they believe it is too strong to sell without a license.

Washington’s increased focus on exporting innovative technologies has led to another American semiconductor company being caught in the web.

AMD Hopes To Get License Approved From the United States

Intriguingly, insiders acquainted with the subject indicated that AMD was optimistic about obtaining certification from the United States Department of Commerce.

AMD was interested in selling its artificial intelligence processor to Chinese clients because it performs at a lower level than what the company offers outside of China.

However, the United States government regulators have declared that for AMD to be able to sell these chips, the company must first obtain a license from the Bureau of Industry and Security of the Department of Commerce.

This move received a large amount of attention across the country, and it was in line with the export limitations implemented by the Biden administration in the past to restrict China’s access to sophisticated semiconductor technologies.

Meanwhile, AMD declined to comment on the topic, demonstrating that the company does not have a clear position regarding whether or not it intends to obtain a license soon.

The Bureau of Industry and Security refused to comment on the incident. Following the public announcement, AMD shares declined during this interim period.

As a result of the AI chip sale prohibition narrative that was mentioned before, it would appear that AMD is experiencing a setback in its competition with Nvidia, which is another major company.

Concerning AMD and Nvidia, the aforementioned export control implemented by the administration of President Joe Biden affected the operations of the tech giants throughout the industry.

Nvidia, on the other hand, swiftly responded to the challenge it encountered by offering a modified model with reduced performance.

Officials from the United States are awaiting AMD’s disclosure of its plans to comply with the decision.